US Greenback (USD) brief squeeze gained traction and broadened towards extra currencies from secure haven to procyclical FX. MYR, Gold, JPY and THB led losses. Whereas US reached a commerce take care of UK, US Commerce Secretary Lutnick did say that commerce offers with South Korea and Japan might take considerably extra time, OCBC’s FX analysts Frances Cheung and Christopher Wong word.
Dangers stay considerably skewed to the upside
“This may occasionally additionally dampen enthusiasm about US commerce talks with China (Vice Premier He Lifeng to fulfill with US Treasury Secretary Scott Bessent and US Commerce consultant Jamieson Greer) in Switzerland this weekend) and different Asian nations (in coming weeks). This morning, Bernama information reported that Malaysia’s bid to coordinate a regional response to US tariffs with ASEAN as a bloc had been rejected by the US.”
“Whereas latest developments on de-escalation could also be constructive on the headline degree, it might not be perceived as constructive in the case of the small print. Alongside larger than anticipated USD/CNY repair for a handful of classes this week and the latest FOMC consequence (no hurry to chop), these underwhelming elements might quickly add to broad weak spot in Asian currencies, together with JPY, MYR and KRW whereas USD rebounds from troughs. DXY rose, consistent with our warning.”
“Final at 100.45 ranges. Day by day momentum stays bullish whereas RSI rose. Dangers stay considerably skewed to the upside. Resistance at 100.80 (23.6% fibo retracement of 2025 peak to trough), 101.40 and 102 (50 DMA). Assist at 99.60 (21 DMA), 98.90 ranges.”
